The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.

0852 ET - Treasury yields slip as oil prices fall, ahead of a $69 billion auction of two-year notes. President Trump addresses the U.N. this morning amid hopes of a diplomatic solution for the Strait of Hormuz. Crude falls 2% to stay below $100, easing inflation pressures. Markets will be watching the auction results to gauge demand for U.S. government debt as interest rate increases loom. The two-year yield trades at 4.730%, slightly lower than yesterday's settlement of 4.751%. The 10-year declines to 4.935% from 4.962%. (paulo.trevisani@wsj.com; @ptrevisani)

0849 ET - The Norwegian krone's recent strength could persist if the Norges Bank raises interest rates by 25 basis points to 4.50% on Thursday and indicates further tightening is possible, ING's Francesco Pesole says in a note. Market pricing for rate rises in Norway isn't as aggressive as for the Federal Reserve and European Central Bank, meaning the Norges Bank faces little pressure to lift its rate projections materially, he says. "We nonetheless expect updated forecasts to show some probability of a further fourth-quarter rate hike, while the statement should continue to leave the door open to additional tightening." The euro falls 0.2% to 10.7929 kroner and ING has a near-term target of 10.70 kroner with potential to reach 10.60 kroner.(renae.dyer@wsj.com)

0827 ET - The global economy has remained resilient in the first three quarters of 2026, mainly driven by AI-related capital expenditure in the U.S. and Asia, Morgan Stanley economists say in a note. Economies in the U.S., Asia, and Europe have remained stable despite high energy prices from the Middle East war, the economists say. That said, economic growth and rising energy costs are pushing major central banks toward higher interest rates, they say. (miriam.mukuru@wsj.com)

0823 ET - The Hungarian forint remains weaker against the euro, showing a limited reaction after Hungary's central bank held interest rates steady at 5.50%. The decision, which follows three consecutive rate cuts of 25 basis points, was widely anticipated with the central bank having warned about the inflationary impact of a weaker forint and higher energy prices, Capital Economics economist Liam Peach says in a note. The central bank is also expected to lower its inflation target, which might imply a higher near-term rate profile, he says. The easing cycle will probably be on pause through the rest of this year, he says. The euro rises 0.4% to 361.60 forints, little changed from levels before the decision.(renae.dyer@wsj.com)

0722 ET - The cost of insuring euro credit against default remains steady as hopes of talks between the U.S. and Iran raise optimism. "Investors continue to balance the prospect of U.S.-Iran talks around the UN General Assembly against continued disruption to Gulf [oil] supply," Capital.com's Daniela Hathorn says in a note. Brent crude drops 2.0% to $98.32 a barrel, after encouraging media reports about oil flows from the Middle East. The iTraxx Europe Crossover index of euro high-yield credit default swaps is steady at 284 basis points, S&P Global Market Intelligence data show. (miriam.mukuru@wsj.com)

0722 ET - The cost of insuring euro credit against default remains steady as hopes of talks between the U.S. and Iran raise optimism. "Investors continue to balance the prospect of U.S.-Iran talks around the UN General Assembly against continued disruption to Gulf [oil] supply," Capital.com's Daniela Hathorn says in a note. Brent crude drops 2.0% to $98.32 a barrel, after encouraging media reports about oil flows from the Middle East. The iTraxx Europe Crossover index of euro high-yield credit default swaps is steady at 284 basis points, S&P Global Market Intelligence data show. (miriam.mukuru@wsj.com)

0716 ET - There were signs at the Bank of England's meeting last week that policymakers' patience around the energy-price shock is wearing thin, Deutsche Bank economists Sanjay Raja and Maui Brennan say in a note. Following the BOE's decision to hold, Deutsche revised its expectation to two quarter-point hikes in November and February, changing its call from no hikes previously. While there wasn't a fundamental shift in rate-setters' thinking, continued high inflation increases the likelihood second-round effects build, the Deutsche economists say. "Put simply, we think the monetary-policy committee may embark on a modest tightening cycle as an insurance policy against second-round effects." However, should energy prices rapidly lower in the coming weeks, the case for hikes may start to weaken, they add. (edward.frankl@wsj.com)

0708 ET - Bitcoin is at risk of a downward correction in the near term as the cryptocurrency's recent rally pauses, ING analyst Roelof-Jan van den Akker says in a note. Bitcoin is last down 1.2% at $85,901 after reaching $87,315 Monday, its highest level since late January, according to LSEG. While bitcoin has risen above the $82,805 resistance level this week, daily momentum indicators have failed to register new highs, he says. A weekly close below $82,805 would increase the risk that a short-term peak is forming and raise the likelihood of a downward corrective phase in the weeks ahead, he says. (renae.dyer@wsj.com)

0652 ET - U.S. diesel prices continue to reach new highs, hitting a fresh record Tuesday as curtailed Russian exports and prolonged disruptions to crude flows in the Strait of Hormuz squeeze global supplies. The national average price of diesel rose to a record of $6.527 a gallon, according to the American Automobile Association, up sharply from $3.688 a gallon a year ago. According to a Bloomberg report, Russia is set to extend a ban on most diesel exports that was introduced earlier this year due to continued Ukrainian attacks on its refineries. "The diesel market is likely to face a challenging winter if the situation in the Middle East does not ease and Russia's ban on diesel exports remains in place for even longer," says Carsten Fritsch from Commerzbank. (giulia.petroni@wsj.com)

0644 ET - Mounting U.K. public borrowing complicates the government's efforts to maintain fiscal credibility, eToro's Lale Akoner says in a note. Data shows U.K. public borrowing stood at 18.3 billion pounds ($24.46 billion) in August, around 20% above borrowing in August 2025. Investors await the budget on October 28 for signs on whether the government can lower borrowing without hurting economic growth, Akoner says. "Weaker public finances can then make investors demand higher gilt yields, which in turn raises the cost of servicing the debt." (miriam.mukuru@wsj.com)

0631 ET - Further signals about additional U.S. interest rate rises from Federal Reserve officials are likely needed in coming weeks for the dollar to defend recent gains, Commerzbank's Antje Praefcke says in a note. Restrictive words, ideally delivered in unison by all Fed members on a regular basis, are key to avoid raising doubts about the Fed's credibility, she says. Given little economic data in the near term, such communication is crucial. "Since the market has already priced in significant interest rate hikes (75 basis points till July 2027), these expectations must be kept running in order to avoid losses in the dollar." The DXY dollar index falls 0.1% to 100.374 after earlier reaching a seven-week high of 100.667. (renae.dyer@wsj.com)

0620 ET - Europe must not remain just a spectator of this week's meeting of Presidents Trump and Xi, Volker Treier of the German Chamber of Commerce and Industry says. "When Washington and Beijing negotiate trade, raw materials, and key technologies, the German economy is directly impacted," he says. Progress in export controls imposed by China and the U.S. is particularly important, given continuing restrictions on critical raw materials, semiconductors, and key technologies, Treier says. "Further tightening could seriously affect German companies." In particular, rare earths and magnets show how vulnerable European supply chains are due to high dependencies, he notes.